Practical “New Product Development” (NPD) For Engineers
Entroids.com
Topics Covered
• Engineering NPD – what are the unique needs and challenges
• Lean startup, lean prod dev, stage gate…so many methods and how to make sense of them
• NPD methods Vs project management tools
• Why so many projects fail in engineering NPD
• Gaps in project management tools
• Introducing the Think-Plan-Do framework for Eng. NPD
• Entroids case study for NPD execution
p 2
Nature of Engineering NPD Creates Unique Challenges
Volatility Uncertainty
Ambiguity Complexity
Challenges in Engineering NPD
Execution is key to NPD success
Customers
Regulations
Technology
Market Trends
Inpu
ts
Solution
ValueProp.
Prob. SolutionFit
ProductMarketFit
On budget
Deliver Value Prop
Meet Prod. Cost
On Schedule
Meet Cust. Exp.
Out
put
NPD Execution
Ingredients of execution•NPD method
eg. StageGate• Project Management• Project team
p 3
Role Of Methods And Tools In NPD Execution
Methods = “What” to do PM Tools = “How” to do it1 2
Customers
Regulations
Technology
Market Trends
Inpu
ts
Solution
ValueProp.
Prob. SolutionFit
ProductMarketFit
On budget
Deliver Value Prop
Meet Prod. Cost
On Schedule
Meet Cust. Exp.
Out
put
NPD Execution
Ingredients of execution•NPD method
eg. StageGate• Project Management• Project team
p 4
NPD Methodology 1Stage Gate – Winning At New Products
Problem Addressed• People work on multiple projects• Difficult to define market needs
And Measure Progress• Simple way to ensure Key
Milestones Are Met
Solution • Simple checklist based system• Covers all aspects & functions of
product development• Useful as a communication tool
for progress• Gives opportunity for Go – No go
decisions
1Dr. Robert Cooper
p 5
NPD Methodology 2Lean Product Development
Problem Addressed• Not easy to consolidate market
requirements and risk assessment• Difficult to coordinate people in
matrixed organization• Not easy to quantify priorities and risks
in a complex project
Solution • Event based product development• Get the core team in one place for key
events• Templates to quantify and prioritize
requirements and risks• Simple visual scheduling tool
1Ronald Mascitelli
p 6
Methodology 3Lean Startup – Build Measure Learn
Problem Addressed• Most startups fail• It’s usually too late when you find flaws in a
business plan• You are usually wrong with what you think
customers want• Cannot predict the market• Advancing the plan is not progress
Solution• Customer development
• Find out what customers want with a iterative customer focused approach
• Rapid hypothesis testing – value, pricing…
• Focus on hypothesis, experiments & insights
1Eric Ries
p 7
Methodology 4Business Model Canvas
Problem Addressed• Business Plans Are Obsolete Soon
After Completion• Nobody Reads A Business Plan• Are Based On Faulty Assumptions
Solution • One Page Business Plan• Easy To State What Is Important• Highlight The Biggest Assumptions• Test And Iterate Business Model • Visual Dashboard
1Alex Osterwalder
p 8
How To Make Sense Of Methods Used For NPD Execution
And more…
Each method serves a unique project needsp 9
Two Broad Types Of NPD Projects In Engineering Companies
New
ness
to C
ompa
ny
Newness to Market
New to world(Disruptive Innovation)
New to company(New product line)
Major Revision(Repositioning)
Minor Revision(Augmentation)
New / Revolutionary
Revisions / Evolutionary
Different project characteristics drive different needs
HighLow
High
Low
p 10
NPD Projects Have Different Characteristics & Execution Needs
Schedule Quality Technology Resources Financial Market
Revisions / Evolutionary Products
New / Revolutionary Products
Nature of Risks
Risk
Lev
el
LowRisk
MediumRisk
HighRisk
Project type drives different execution methodsp 11
New / Revolutionary Products Have Big Market And Finance Risks
Focus on• Problem and solution fit• Customer feedback loops with MVP• Fail fast / pivot effectively• Business model validation• Product – market fit
Project management implications• Constant customer input and testing• Flexibility to pivot quickly• Challenging customer development• Improvise & compensate for lack of
expertise / technology expertise
Methods That Work Best
Lean Startup Methodology
Business Model Canvas
p 12
Focus on• Firm schedule expectations• Quality at launch• Product cost• Rapid learning cycles for technology
development• Supply chain and manufacturing risks
Project management implications• Maintain team accountability in a matrix
organization• Close coupling of tasks with project needs• Internal and external communications• Keep focus on right tasks at right time
Evolutionary Products Have Big Quality & Schedule Risks
Methods That Work Best
Lean Product Development
Stage-Gate NPD
p 13
What NPD Execution Methods Are Not?
• Not The Same As Project Management
• Not An Automated System
• Not A Linear System
• Not A Project Control Mechanism
• Not A Bureaucratic System
Project management is required to compliment Stage-Gate or any other method
p 14
Methods = “What” to do PM Tools = “How” to do it1 2
Inpu
ts
Solution
ValueProp.
Prob. SolutionFit
ProductMarketFit
On budget
Deliver Value Prop
Meet Prod. Cost
On Schedule
Meet Cust. Exp.
Resu
lts
NPD Execution
Business Model
MarketReq.
Risks Milestones
Four pillars of execution
Project Management Addresses The “How” In NPD
Customers
Regulations
Technology
Market Trends
p 15
Project Management Challenges in Engineering NPD
NPD ExecutionChallenges
Focus On Important Actions
Team Accountability
Uncertainty
Risks
Dynamic Schedule
VisualCommunication
Changing Priority & Needs
MS Project and Smart Sheet do not address these challenges
p 16
Current Tools Used In Engineering NPD Are Not Ideal. Here’s Why?
Gaps That Current Tools Create For NPDMS
Project Smart Sheet
• Project Sitting No No
• Project needs alignment No No
• Effective Communication Some Better
• Change Plans On The Fly Difficult Difficult
• Team Member Accountability No Some
• Clear focus No No
• Manage Risks And Requirements No No
• Monitor And Control Budget Yes Yes
• Task Management Yes Yes
• Collaboration Tool No Yes
Clear need for a better framework for Project Management in Eng. NPD execution p 17
Achieve More By First Placing The Rocks. Don’t Sort The Pebbles & Sand
Think-plan-do Framework Separates The Rocks From The Pebbles In Execution. Achieve More By Focusing On What Is Important
• Rocks – Project Needs (Four Pillars Of NDP Execution)• Pebbles – Major Tasks Per Each
Project Need • Sand – Nugget Sized Current
Activities
p 18
Entroids – Think-Plan-Do Framework For Practical Engineering NPD
Tier 1: Strategic Project NeedsMilestones, Risks, Requirements & Business Canvas
Tier 2: Tactical PlanningExecution Plan for all Strategic needs – What to do for each need
Tier 3: Focus On ActionsWhat needs to be done now to achieve your major tasks
p 19
Entroids Think – Plan – DO Framework Seamlessly Aligns Strategic Project Needs To Current Activities
1
ENTROIDS THINK-PLAN-DO FRAMEWORK
THINK Project Needs
PLAN Major Tasks
DO Current Actions
TIER
TIER
TIER
2
3
Country
Region
Street View
p 20
Entroids – Think-Plan-Do Framework For Practical Engineering NPD
Tier 1: Strategic Project NeedsMilestones, Risks, Requirements & Business Canvas
Tier 2: Tactical PlanningExecution Plan for all Strategic needs – What to do for each need
Tier 3: Focus On ActionsWhat needs to be done now to achieve your major tasks
p 21
Four Pillars Of Execution Is At The Core Of NPD Project Management Success
•Task management•Urgent Vs important
•Visual dashboards •Reduce waste
Busin
ess M
odel
Requ
irem
ents
Risk
s
Mile
ston
es
Think-Plan-DoFramework for NPD
p 22
The Four Pillars Of Execution That Enable NPD Success
• Problem – Solution Fit
• Product – Market Fit • Business Fit \w
Company Financial Goals
• What Are The Critical Resource & Capital Requirements
• Requirements / Features Which Deliver Customer Value
• Prioritize Requirements Based On Customer Value vs. Efforts In Line \w Business Strategy
• Identify Key Deliverables At Each Milestone To Gauge Progress
• Measure Of Efforts vs. Target Schedules
• Identify Risks & Plan Mitigations
• Optimize Resource & Capital Usage
• Minimize “Do-Over” Loops
p 23
NPD Strategic Project Need 1Business Case / Business Model Canvas
Problem Statement
Solution
Key Resources
Unique ValueProposition
Unfair Advantage Customers
Channels
Costs Revenues
• Job To Be Done• Gains• Pains
🚚
🏬🎁
😓
🔧
👤
💵💸
🍯
• Awareness• Sale• Delivery
• Types• Persona• The secret sauce• Direct
• In-Direct
• Product & Support
• Alternative
• Drivers • External Support
• Total Cost Of Ownership• Pc Price Reduction
• Gain New Markets / Leadership• Gain Price vs. Value Created
Capture Your Assumptions In Defining The Business Model & Experiment To Validate Them p 24
NPD Strategic Project Need 2Product Requirements
Product Requirements Should Be Prioritized And Communicated In A Way That The Product Development And Marketing Requirements Are Always In A Synch
MUST SHOULD COULD
High Priority Medium Priority Low Priority
• Critical To Core Value Proposition
• Cannot go to market without this
• Development Target
• Stretch Targets For Internal Teams
• Creates Wow or Significant Lead Over Competitors If Achieved
MUST DO DIFFERENTIATE
EVALUATE AVOID
Trivial ExtremeEFFORTEx
pect
edDe
light
VALU
E
p 25
NPD Strategic Project Need 3Risk Management
NUISANCE MITIGATE
IGNORE INSURE
Trivial ExtremeIMPACTRa
reVe
ry L
ikel
yPR
OBA
BILT
YNPD SCHEDULEStart Launch
RISK
IMPA
CT &
PR
OBA
BILI
TYLo
wHi
gh
PLAN FINANCE DEVELOP MARKET
FAILURE
SUCCESS
You Can Beat The Odds And Build A Thriving And Rewarding Venture By Learning To Recognize And Mitigate Risks Effectively
p 26
NPD Strategic Project Need 4Milestone Management
Marketing Requirements
Concept Feasibility
Launch Partnership
Business Case
Prototype
DFMEA
Jul’ 16 Aug’ 16 Sep’ 16 Oct’ 16 Nov’ 16 Dec’ 16
Priority : High Owner: DSPlanned Dt : Sep’ 16Estimated : Nov’ 16
Gate 1Gate 2
Gate 2
Gate 3
Gate 2Gate 3
p 27
The Three Pillars Of Effective Milestone Management Are Risks, Assumptions And Deliverables. At Each Milestone The Risks Should Be
Mitigated, Assumptions Validated, And Deliverables Achieved
Entroids – Think-Plan-Do Framework For Practical Engineering NPD
Tier 1: Strategic Project NeedsMilestones, Risks, Requirements & Business Canvas
Tier 2: Tactical PlanningExecution Plan for all Strategic needs – What to do for each need
Tier 3: Focus On ActionsWhat needs to be done now to achieve your major tasks
p 28
PLAN Major Tasks
Cabinet Redesign Dwgs
Critical Components
Prototype Build
Lab Tests
Jul’ 16 Aug’ 16 Sep’ 16 Oct’ 16 Nov’ 16 Dec’ 16
Priority : High Owner: DSDue Dt : Dec’ 16
Major Task 1
Major Task 2
Major Task 3
Major Task 4
p 29
Entroids – Think-Plan-Do Framework For Practical Engineering NPD
Tier 1: Strategic Project NeedsMilestones, Risks, Requirements & Business Canvas
Tier 2: Tactical PlanningExecution Plan for all Strategic needs – What to do for each need
Tier 3: Focus On ActionsWhat needs to be done now to achieve your major tasks
p 30
DO Current Actions
• Identify Which Dimensions Are Critical•What would be the
boundary conditions from Marketing Requirements
6/29 VK• Receive Supplier
Drawings For Critical Components
7/2 CG• Assess Competitive
Cabinet Drawings & provide to Engineering
6/18 VV
p 31
Navigate & Zoom In Through Details Effectively
Requirement
p 32
• Work Smart – Clearly Focus On What Is Important & Urgent
• Win Time Back – Spend Less Time In Project Management
• Quick Diagnostics – Easily Find What Slipped Through The Cracks
• Automate Accountability – Visually See Each Team Member’s Impact
• Communicate Seamlessly – Visual & List Dashboard For Planning & Performance Monitoring
What Does Entroids Bring To Your New Product Development ?
p 33